The Oracle of Omaha’s preferred stock is Apple (Nasdaq: AAPL), as has been widely reported. To the tune of $161.5 billion, he has over 915 million shares of Apple stock. It accounts for roughly 47 percent of Berkshire Hathaway’s overall worth. And it’s five times more than his next largest wager.
Starting in 2016, Buffett has been steadily adding to his holdings of Apple shares. After adding nearly 20 million shares in the first quarter, his decision to not acquire any shares in the second quarter stood out.
Apple is a favourite of Buffett’s because it satisfies his standards as an investor. It commands a dominant portion of the market, is a household name all over the world, generates healthy returns on investment, and is reasonably priced.
However, Apple’s services division is the company’s future. Last quarter, product sales dropped 4.5%, while service sales increased 5.6%. At 71%, the App Store, Apple Music, Apple Pay, and iCloud brought approximately $21 billion in revenue. At present, the division is responsible for 22% of overall income.
It’s possible that Buffett may reinvest in Apple now that the stock has dropped 11% from its highs.
After selling his Chevron stock, Warren Buffett began purchasing Occidental Petroleum (NYSE:OXY). He began buying shares last year to the tune of about $8 billion, and he has continued to do so virtually quarterly ever since. He now has a 25% stake in the business and has SEC approval to increase it to 50%.
The company’s spending binge has increased its value to $13.7 billion. This represents 3.9% of Berkshire’s overall holdings.
Warren Buffett is certain that the massive oil-producing Permian Basin area in the United States is the genuine thing. He justified his purchase of Occidental shares by stating that he was placing “a bet on the fact that the Permian Basin is what it is cracked up to be.”
However, there is substantial opportunity due to the limited global oil supply. Because of Russia’s invasion of Ukraine, there is now a severe scarcity of fuel. There is…
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